Discovery Communications, Inc. (NASDAQ: DISCA) shares rose in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Analysts at Pivotal Research reiterated a Hold rating on shares of Discovery Communications, Inc. (NASDAQ: DISCA) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Hold on the shares, the company has a 52-week high of $29.75. The one-year price target of $27.95 is above the opening price of $26.36, causing a number of other analysts to report on the company recently. Share prices sometimes get a bounce to the upside when analysts reiterate coverage.
Shares of Discovery Communications, Inc. (NASDAQ: DISCA) opened at $26.36 yesterday trading between $26.34 and $26.74, and last traded at $26.74, which is a jump of $0.23 compared to the previous closing price.
Discovery Communications, Inc. (NASDAQ: DISCA) currently has a market cap of 12.22B.
Discovery Communications, Inc. (NASDAQ: DISCA) Average Daily Trading Volume
240,515 shares crossed the trading desk yesterday, 50 percent lower than the norm, out of a total float 279,364,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts that research thousands of stocks, so it is good validation to see them buying a stock you are researching.
Discovery Communications, Inc. (NASDAQ: DISCA) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Discovery Communications, Inc. (NASDAQ: DISCA) now has a 50-day MA of $27.95 and 200-day MA of $26.34. It has traded in a 52-week range between $23.66 – 29.75 and today’s last price is 10.12%% lower than the 52 week high of $29.75.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over a 3 year period.
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